Banc of America Downgrades Openwave to 'Buy'
Banc of America downgraded Openwave Systems (OPWV ) to buy from strong buy
Analyst Rob Sanderson says the slowing business following the Sept. 11 terrorist attack has impacted sales activity. He thinks Unified Messaging (U/M) prospects are dimming, and notes management thinks the adoption curve will be modest considering the unproven economic model and market acceptance. Sanderson believes carrier investments in market development initiatives like U/M are under increased scrutiny. He notes management did not provide guidance beyond September.
Sanderson sees $0.14 calendar 2001 EPS, and $0.25 for calendar 2002. He cut the $25 target to $13.